Comfort Delgro share price crashed to new low

It is a case of all hell broke loose. Comfort Delgro share price faces potential crisis as it plunged to a record low of $1.14 on 16 January 2023. What could have led to the gut-wrenching train wreck for Comfort Delgro share price? After all, we are only less than one month into 2023. The devastating meltdown of Comfort Delgro share price have prompted an SG Wealth Builder member to request for a write-up on this counter. Should investors sell everything and run for their lives?

Comfort Delgro is a transport company with a total fleet size of about 34,000 buses, taxis and rental vehicles. SBS Transit, a listed company, is a subsidiary. Vicom, another SGX-listed company, is another subsidiary. For the past decade, Comfort Delgro has spread its wings overseas, with operations in Australia, the United Kingdom, New Zealand, China, Ireland and Malaysia.

Although Comfort Delgro is widely perceived as a taxi company, the Group traditionally derived its main bulk of the revenue from the public transport services (bus and rail). In this context, several major changes in the rail-hailing and public transport from 2018 to 2019 had impacted Comfort’s businesses. Among them is the New Rail Financing Framework.

Looking back, my last article on Comfort Delgro share price was actually in 2018. Obviously, that was a long time ago. During this period, ride-hailing companies like Grab and GoJek had upended the entire taxi industry in Singapore while pandemic had also played a part in disrupting commuters’ travelling patterns. When I wrote the 2018 article, Comfort Delgro share price had plunged from $3.20 in 2015 to an abysmal $2.10 in 2018. That seemed like the lowest point for the stock. Yet in early 2023, the counter continued to sink to another new low. Against this backdrop, investors could be forgiven for feeling disturbed over the long-time value destruction of Comfort Delgro share price.

At the rate of slump, it would take a very brave investor to enter this counter. At the same time, existing shareholders should face the difficult question of whether they should dollar average their investments. Make no mistake, cheap does not translate value. For all you know, we may not see light at end of tunnel for Comfort Delgro share price any time soon. In fact, I have raised the question on whether investors should run for their lives in 2018. Those who had not exited may be having some regrets.

The recent plunge of Comfort Delgro share price is all the more puzzling for many investors as it came at a time when the Group managed to achieve an impressive business turnaround from the fallout from pandemic. In this article, I will share my analysis on the outlook for Comfort Delgro share price in 2023.Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am not vested in Comfort Delgro at the moment. Whether Comfort Delgro share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

Comfort Delgro share price faces lost decade?

To be frank, it is not difficult to understand the reason for the sharp drop of Comfort Delgro share price since September 2022. The drop should be due to [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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